What is the difference between wage differentials caused by differences in human capital and compensating wage differentials?

What will be an ideal response?


Human capital refers to an individual's stock of skills to produce economic value. With higher education and experience, the human capital of an individual increases. Hence, people with a higher level of human capital tend to get higher wages than people with a lower level of human capital. On the other hand, compensating wage differentials arise from the nature of the job rather than the human capital involved. A compensating wage differential is a wage premium paid in order to attract workers to otherwise undesirable occupations.

Economics

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a. True b. False Indicate whether the statement is true or false

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What will be an ideal response?

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The standard discussion of monetary policy is based on the assumption that the:

A. entire yield curve shifts up when the Fed sells government bonds. B. yield curve becomes steeper when the Fed buys government bonds. C. entire yield curve shifts down when the Fed sells government bonds. D. yield curve becomes inverted when the Fed buys government bonds.

Economics

Assume that the current generation or first generation consists of 20 million people, half of whom are women. If the total fertility rate is 1.2 and the only way people die is of old age, how big will the second generation be? In percentage terms, how

much smaller is second generation than the previous generation? What will be an ideal response?

Economics